Correlation Between NamSys and Bewhere Holdings
Can any of the company-specific risk be diversified away by investing in both NamSys and Bewhere Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining NamSys and Bewhere Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NamSys Inc and Bewhere Holdings, you can compare the effects of market volatilities on NamSys and Bewhere Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in NamSys with a short position of Bewhere Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of NamSys and Bewhere Holdings.
Diversification Opportunities for NamSys and Bewhere Holdings
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NamSys and Bewhere is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding NamSys Inc and Bewhere Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bewhere Holdings and NamSys is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on NamSys Inc are associated (or correlated) with Bewhere Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bewhere Holdings has no effect on the direction of NamSys i.e., NamSys and Bewhere Holdings go up and down completely randomly.
Pair Corralation between NamSys and Bewhere Holdings
Assuming the 90 days horizon NamSys Inc is expected to under-perform the Bewhere Holdings. But the stock apears to be less risky and, when comparing its historical volatility, NamSys Inc is 1.25 times less risky than Bewhere Holdings. The stock trades about -0.05 of its potential returns per unit of risk. The Bewhere Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 66.00 in Bewhere Holdings on November 1, 2024 and sell it today you would earn a total of 5.00 from holding Bewhere Holdings or generate 7.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NamSys Inc vs. Bewhere Holdings
Performance |
| Timeline |
| NamSys Inc |
| Bewhere Holdings |
NamSys and Bewhere Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NamSys and Bewhere Holdings
The main advantage of trading using opposite NamSys and Bewhere Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NamSys position performs unexpectedly, Bewhere Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bewhere Holdings will offset losses from the drop in Bewhere Holdings' long position.| NamSys vs. AirIQ Inc | NamSys vs. Renoworks Software | NamSys vs. Quorum Information Technologies | NamSys vs. Redishred Capital Corp |
| Bewhere Holdings vs. Gatekeeper Systems | Bewhere Holdings vs. Reliq Health Technologies | Bewhere Holdings vs. AirIQ Inc | Bewhere Holdings vs. AnalytixInsight |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
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